Globe Telecom prices US$600M 10 & 15-YR Dual Tranche USD Denominated Senior Unsecured Fixed Rate Notes

Globe Telecom, Inc. (the “Company” or “Globe”), a leading telecommunications company in the
Philippines successfully priced today a US$ 300 million 10-year and US$ 300 million 15-year Reg S only dual tranche unrated US dollar-denominated senior notes (the “Notes”) with a coupon rate of 2.500% and 3.000%, respectively.

This offering represents the first time Globe is tapping the international debt capital markets since 2004 allowing the Company to take advantage of the favorable interest rate environment and diversify its lender base.

The Notes are unrated and have been applied for listing on the Singapore Exchange Securities Trading Limited. In Globe’s mandate announcement dated 15 July 2020, the Company indicated that the net proceeds from the issue of the Notes will be used to finance Globe’s capital expenditures, refinance maturing and/or existing obligations, and for general corporate requirements.

The final order book was oversubscribed by 6.5 times, allowing Globe to tighten from the initial pricing guidance by 40 basis points for the 10-year tranche and 35 basis points for the 15-year tranche.

The 10-year tranche represents the lowest ever yield for an unrated 10-year USD issuance globally and the tightest spread ever for any unrated corporate USD issuance in Southeast Asia. On the other hand, the 15-year tranche represents the longest ever tenor for an unrated corporate USD issuance globally, according to Dealogic.

According to Globe President and Chief Executive Officer (CEO) Ernest L. Cu: “The issuance is a
testament of the investor community’s unwavering trust in the Company’s strong business fundamentals. The success of the offering, after having last tapped the international capital markets in 2004 and achieving a record-low coupon for the 10-year tranche and the record-long tenor for unrated bonds for the 15-year tranche, enables us to maintain our momentum, enhance our network and deliver on our commitment of providing first-world internet connectivity to the Philippines.

We are extremely delighted with the outcome of our re-entry in accessing the debt capital markets,
especially with the speed and execution of the deal team making it one of the fastest unrated bond
deals for a corporate. The outstanding success of the transaction underscores global investors’ confidence in Globe’s strong long-term outlook. This issuance was an important milestone in our continuous engagement with investors and expanding our debt capital structure
,” Globe Chief Finance Officer (CFO) Rizza Maniego-Eala added.

HSBC and J.P. Morgan acted as Joint Global Coordinators, and HSBC, J.P. Morgan, and BPI Capital
Corporation acted as Joint Lead Managers and Joint Bookrunners.


The Notes being offered or sold herein have not been registered and will not be registered with the Philippine Securities and Exchange Commission under the Philippine Securities Regulation Code (Code). Any future offer or sale of the Notes is subject to the registration requirement under the Code unless such offer or sale qualifies as an exempt transaction.

This is not an offer of securities for sale in the United States or elsewhere where such offer or sale would be unlawful. The shares of the Company are not being registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the shares of the Company in the United States. No money, securities or other consideration is being solicited by this document or the information contained herein and, if sent in response to this document or the information contained herein, will not be accepted.

Not for Publication or distribution in the United States, Canada, Japan, or Australia or any jurisdiction where publication or distribution might constitute a violation of the local securities laws or regulations of such jurisdiction.

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Globe Telecom prices US$600M 10 & 15-YR Dual Tranche USD Denominated Senior Unsecured Fixed Rate Notes Globe Telecom prices US$600M 10 & 15-YR Dual Tranche USD Denominated Senior Unsecured Fixed Rate Notes Reviewed by Vernon Joseph Go on Friday, July 17, 2020 Rating: 5

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